Forex

Introduction to the Forex Market

The forex market (FX) comprises various sub-markets, including Spot FX, Futures Derivatives, Forward Derivatives, and the CFD derivatives market, which is particularly popular among retail clients. Together, these transactions form the world’s largest and most liquid financial market, with an average daily trading volume exceeding $5 trillion.

The FX CFD derivatives market consists of buyers and sellers, with large international banks as the primary participants. Transactions are conducted via electronic trading systems in an over-the-counter (OTC) format, meaning they do not occur on regulated exchanges. As a result, price quotes can vary across major international banks. The spot FX market serves as a reference point for these quotes.

The spot FX market is also an OTC market dominated by large international banks.

Factors Influencing Forex Trading In forex trading, the spot price of a currency pair is influenced by several factors, including: Economic Outlook: Regional economic growth and stability.

Geopolitical Events: Global political developments impacting currency values.

Market Sentiment: News releases and events that are perceived positively or negatively by traders.

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